The nominal interest rate minus the expected rate of inflation: "defines the real interest rate" (Option A)
<h3>What is nominal interest rate?</h3>
In business and accounting, the nominal interest rate or nominal rate of interest refers to one of two things: the rate of interest before inflation adjustment, or the rate of interest "as stated" without adjustment for the full effect of compounding.
<h3>What is real interest rate?</h3>
A real interest rate is the observed market interest rate adjusted for inflationary impacts.
It indicates the buying power worth of interest paid on a loan or investment. It also shows a borrower's and lender's rate of time preference.
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Full Question:
The nominal interest rate minus the expected rate of inflation ________.
A) defines the real interest rate
B) is a less accurate measure of the incentives to borrow and lend than is the nominal interest rate
C) is a less accurate indicator of the tightness of credit market conditions than is the nominal interest rate
D) defines the discount rate
Answer: Perquisites
Explanation:
Perquisites are benefits an employee enjoys from occupying a particular job position, these benefits are different from the employee's fixed salary. An example of perquisites is the gifts both in cash and kind that a team's coach would receive from his/her team overtime.
Answer:
Different people define culture in different ways, for example “Culture: learned and shared human patterns or models for living; day- to-day living patterns, these patterns and models pervade all aspects of human social interaction. Culture is mankind’s primary adaptive mechanism”1. Another author says that “Culture is the collective programming of the mind which distinguishes the members of one category of people from another.”2. from these definitions it is clear that both explains the same idea but in different words, says that culture is first learned after learning it is then shared so it’s a common fact that the younger first learn the culture from their elders and when these young become elders they transfer it to the next generation. But the culture learned it includes all the aspects of human interaction and thus it become the mankind’s adoptive mechanism.
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